§ 872-5. Minimum Contents of Residential Lease Option Contract; Formalities.

(a)

The lease portion of the Residential Lease Option Contract shall conform to Chapter 5321 of the Ohio Revised Code.

(b)

In addition to the landlord duties and tenant duties prescribed in this Chapter, and Chapter 871 of the Cincinnati Municipal Code, every Residential Lease Option Contract shall be executed in duplicate, and a copy of the contract shall be provided to the landlord and the tenant.

(1)

The words "THIS IS NOT A CONTRACT TO BUY. THIS CONTRACT GIVES YOU THE RIGHT TO BUY THE PROPERTY DESCRIBED IN IT. YOU WILL NOT OWN THE PROPERTY UNTIL YOU FULFILL THE TERMS OF THIS CONTRACT AND FIND FINANCING TO PAY THE PURCHASE PRICE IN FULL." shall be printed in bold face type, all caps, and be no smaller than 14 pt. font; both on the top of the first page of any contract setting forth the terms of the Option to Purchase and again directly above the tenant's signature on the same contract.

(2)

The following statements shall be printed clearly and conspicuously in bold face type, in the same size type used for the text of the contract and in close proximity to the statement of the amount of the option fee:

(a)

"The tenant is renting this property and has all the rights enjoyed by any other residential tenant in the City of Cincinnati;

(b)

In addition, the tenant has paid a fee of $_______ (the amount of the option fee) for the right to purchase the property located at ___________ (street address of the rental property), Cincinnati, Ohio ___________ (zip code of the property);

(c)

If the tenant does not pay the monthly rent or violates other terms of the lease, the tenant may be evicted and lose their option fee."

(c)

The Residential Lease Option Contract shall also contain at least the following provisions:

(1)

The full names and then current mailing addresses of all the parties to the contract;

(2)

The date when the contract was signed by each party;

(3)

A legal description of the property;

(4)

The amount of tenant's monthly rent;

(5)

A statement outlining which, if any, expenses of closing and sale will be paid by the landlord and which, if any, will be paid by the tenant;

(6)

The price at which the parties have agreed that the tenant may purchase the property (also include any adjustments that may be made to the purchase price in dollar amounts and under what circumstances those adjustments will be made);

(7)

The amount, if any, of the tenant's monthly rent which is to be applied toward the purchase price;

(8)

The period of time during which the tenant may exercise his right to buy the property;

(9)

A statement of any encumbrances known or that could be reasonably ascertained against the property;

(10)

A statement requiring the landlord to deliver a general warranty deed on completion of the contract, or the best deed that is available when the landlord is legally unable to deliver a general warranty deed;

(11)

A provision that the landlord provide evidence of title at closing (upon exercise of option);

(12)

A provision that the landlord provide a description of the landlord's ownership interest in the property and specify where documentation showing the landlord's ownership interest is located;

(13)

A statement of any pending order of any public agency against the property;

(14)

A statement that any and all liens and mortgages against the property shall be removed by the landlord at the time of the closing, excepting and specifying those to be assumed by the tenant;

(15)

A statement that, prior to the execution of the Residential Lease Option Contract, the tenant has received and reviewed the City of Cincinnati's Mandatory Lease Option Pamphlet, explaining the rights and obligations of the tenant and the landlord under a Residential Lease Option Contract;

(16)

A statement that the tenant has received, reviewed, and signed, prior to the execution of the option agreement, a completed copy of the State of Ohio Property disclosure form for residential real property transfers;

(17)

A statement that upon demand, but no more than twice in each 12 month period, the landlord will provide within ten days a reconciliation of:

(a)

The tenant's purchase price as of the date of the statement;

(b)

Any calculations used to reach that price, showing all credits toward the purchase price and all additions to it; and

(c)

A statement that this reconciliation shall either be delivered in person, with the tenant signing a copy of the statement as evidence of receipt, or by registered mail to the property address, with the return receipt serving as evidence of receipt.

(Ordained by Ord. No. 327-2004, eff. Nov. 5, 2004)